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TMI Blog2011 (11) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... lassifiable as Commercial Training or Coaching and therefore the Appellants should have paid service tax for the gross value received for imparting such training. The Appellants are not contesting the classification of the said service as Commercial Training or Coaching . The Appellants' contention is that they are eligible for exemption under notification 09/2003-ST, dated 20-06-2003 up to 09-09-2004 and later notification 24/2004-ST, dated 10-09-2004. The period of dispute is 01-07-2003 to September 2008. Both the notifications exempted taxable services provided in relation to commercial training or coaching by a vocational training institute . The meaning of this expression was given as under in the said notifications: ' vocational training institute means a commercial training or coaching centre which provides vocational coaching or training that impart skills to enable the trainee to seek employment or undertake self-employment, directly after such training or coaching;' 3. The Revenue was of the view that the impugned training cannot be considered as vocational training . On that basis Revenue issued a Show Cause Notice demanding service tax to the tun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dures and documentation in export - import trade (v) import management; and (vi) quality management in international trade. For each of these units the students are given training in both theoretical and practical aspects so that the students are hands on with the procedures and rules of a particular aspect of export import management. Some of the practical aspects of the above course include: (a) Procedures and formalities, Import-Export Code No., sales tax and Vat formalities; (b) Membership of Export Promotion Council; (c) Export pricing; computing cost, price quotations and incoterms namely FOB, CFR, CIF etc.; (d) Methods of payment in export trade like Letter of credit (L/c), documents against payment (D/P), documents against acceptance (D/A), advance payment, open account (consignment export); (e) Export documentation procedure and import documentation. It is pertinent to mention here that in case of export documentation, the students are given work books containing sample copies of invoices, bills of entry and other import and export documents and the students are asked to fill in those documents. Thus, the nature of training provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wo requirements: (a) The Institute has to be registered with the National Council for Vocational Training; (b) The institute has to offer courses in designated trade as notified under the Apprentices Act, 1961 (52 of 1961) (Apprentices Act). In the above context, it is submitted that as per Section 2(e) of the Apprentices Act defines the term 'designated trade'. Further, the Central Government from time to time issue notification under Section 2(e) supra notifying various fields as 'designated trade'. In this regard, it is submitted that Notification SO 2961, dated November 3, 1992 specifically notifies the area of 'Export-Import Practises and Documentation' as one of the designated trades. Copy of the relevant extracts from the Apprentices Act, 1961 and the above notification is annexed as Annexure 13. It is submitted that the Legislature recognises the courses notified as designated trade under the Apprentices Act, 1961, as vocational training courses. It is submitted that though the above amendment is prospective in nature but it clearly indicates that the Legislature always intended the courses in designated trades, supra as vocational co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... include department stores, speciality stores, design houses, developing products for exporters as well as sourcing for buying houses representing international retail chains. It is submitted that training imparted by AEPPL to the students in the above course enables the students to seek employment upon completion of the above courses as is evident from the placement records of AEPPL. It is, therefore, submitted that the course 'Diploma in Merchandising' would qualify as vocation course. B.3 It is further submitted that more than 70 per cent of the students who join the above courses are freshers i.e students with no prior knowledge in the above areas covered by the courses offered by AEPPL. Thus, the entire course is structured in a manner so as to provide wholesome skill sets and training to the students and not mere improvement or enhancement of existing skills, as envisaged in the clarification issued by the CBEC supra. Thus, the courses offered by AEPPL squarely fall under the category of vocational in nature and consequently the units of AEPPL viz. FTDC and CRM would qualify as vocational training institute as defined under the Exemption Notifications. Consequen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arious State government authorities under cover of Letter No. DGET-2/2/2007-MES/IS (Part-I), dated 04-10-2010. The Appellants have submitted a tabulation showing the skills specified in the manual mapped against the course contents of their courses. 10. The argument of the Appellant is that the GOI has been using the word vocational training to cover the type of training provided by the Appellant. 11. The Appellants also rely on the decision of Wigan Leigh College (India) Ltd v. Jt. CST [2008] 12 STT 157 (Bang. - CESTAT). In the said case, the institute was providing training in Business Management and Fashion Technology, Advertising, Graphic Design, Media Studies. The Tribunal decided that such training was vocational training. 12. The Appellants also submit that substantial portion of the demand is time barred because notice for the period 01-07-2003 to September 2008 was issued only on 31-03-2009. They submit that as per legal opinion taken by them based on decision of the Tribunal as cited supra they were under the bona fide impression that they were not required to pay service tax. 13. The Ld SDR on the other hand submits that vocational training is meant for p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is outside the normal meaning of vocational training , the Appellants are not eligible for the impugned exemption. 16. In the matter of suppression the Ld SDR relies on para 49 of the impugned order reading as under: So far as 'suppression of facts' is concerned, the phrase implies that withholding of information is suppression of facts. P. Ramanatha Aiyar's Concise Law Dictionary (1997 Edition Reprint 2003 page 822) defines the phrase in very lucidly and accurately as - Where there is an obligation to speak, a failure to speak will constitute the 'suppression of fact' but where there is no obligation to speak, silence cannot be termed 'suppression'. The assesse had an obligation to comply with the statutory provisions and to furnish the information as required thereunder Section 68(1) of the Act ibid, as stood during the relevant period, proves that every person providing taxable service to any person shall pay service tax at the rate specified in Section 66 in such manner and within such period as may be prescribed. Section 66 provides the rate of tax as well as levy of the tax on the services specified therein. Subclause (zzc) of Clause (105) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... training in skills like carpentry, smithy, making of gem and jewellery etc. which are skills meant for people with relatively low levels of education and training imparted to a person with education up to 12th standard, training them for white collar jobs cannot considered as vocational training. Concise Oxford Dictionary gives the meaning for vocation as a person's employment or main occupation especially one requiring dedication . Meaning of the term vocational according to the said dictionary is relating to an occupation or employment . In relation to education and training it gives the meaning directed at a particular occupation or its skill . When engagement in occupation or employment becomes outcome of vocational training, pedantic approach as that is made by Revenue is undesirable. 18. The Ld. SDR seeks support for his argument from the clarification issued by CBDT referred to in para 15 above. This clarification was issued in the context of a simplified scheme for payment of Income Tax by small businessmen and thus essentially dealt with a procedural matter and was not in the context of any charging provisions or for the purpose of providing exemption. Furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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